Hedge Fund Results are Probably Overstated

Harold Bradley, chief investment officer at the Kauffman Foundation in Kansas City, writes that survivorship bias is alive and well in the hedge fund world. Of course, not having the worst funds reporting their results will make the average return look better than it actually is; to the tune of at least three percentage points a year according to Mr. Bradley, citing an article from a 2007 article in the Journal of Portfolio Management.

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